Another bankruptcy in the United States

The banking crisis in the United States was again evident with the downfall of the First Republic Bank. It is the second largest such institution in history located in the country. It turns out that to save him, the First Republic intervened, in the first place, by the federal government. Meanwhile, the Federal Deposit Insurance Corporation (FDIC) seized First Republic for delivery to JP Morgan. The latter confirmed Washington’s intentions to prevent the crisis from worsening at any cost.

It even concerned President Joe Biden, who made remarks at the White House. The president explained that these measures will ensure that the banking system is safe and sound.

By mid-March, 11 banks, including JPMorgan, had injected $30 billion into the institution. All this with the aim of containing panic in the midst of a very rough ride of sediment.

But the damage to the bank’s business model eventually led to its collapse and acquisition of JP Morgan. With this event, the focus on the system and the reaffirmed position of the Wall Street giant has become more than clear.

on Jamie Dimon, President and CEO of JP Morgan, said that with its capabilities, financial strength and business model, the offer was completed.

Therefore, last Monday, 84 branches of the First Republic were opened as branches of JP Morgan. Likewise, the Wall Street giant will take over the deposits and all assets of the bankrupt institution.

Falling into the US economy?

Although a recession has been avoided for the time being, expectations point to a deepening slowdown.

While it is true that there are rules preventing banks like JPMorgan from absorbing their competitors, Biden has supported the move. Likewise, it showed the world Washington’s urgency in confronting the banking crisis.